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#2: Summer 2016

Dear Readers,

This year marks the 22nd anniversary of the North American Free Trade Agreement. Though the opinion on the overall impact of NAFTA on the North American economies is divided, it is unquestionable that the agreement did in fact achieve one of its main goals, that is, to strengthen the trade integration among its members.

The elimination of many pre-existing trade barriers has increased the flow of goods and services across the borders of Canada, USA and Mexico.
Statistics of the past two decades, recently released by the Ministry of Economy of Mexico, show that Mexican trade volumes, with its two North American partners, have increased more than fivefold, in terms of values, from USD $89 billion in 1993 to $516 billion in 2015.

NAFTA has augmented the specialization of the national economies by leveraging on the individual strengths of each and by creating new competitive advantages.

In particular, manufacturers with facilities in all three countries have benefitted from numerous advantages stemming from economies of scale, increased trade integration and specialization at a North American level.
Canadian companies have gained a leadership position in Mexico in the mining, aerospace and transportation (railway) sectors.
The US have become a net exporter of energy to the region thanks to the new non-conventional oil and gas extraction technologies.
Mexico’s reliance on oil exports has decreased in favour of a strong and diversified manufacturing industry. North American consumers have shown an appreciation of made-in-Mexico’s durable and non-durable consumers’ products, as well as food products, thus creating employment and revenue for both the companies and the Mexican government. The Mexican manufacturing industry has created wealth and benefits across the continent as well.
NAFTA has also offered many opportunities to numerous Italian industrial technology providers. Initially, only the major Italian corporations took advantage of these opportunities, however, the number of Italian companies with subsidiaries, warehouses and manufacturing facilities in the NAFTA countries has slowly become more significant. Joint ventures and partnerships with local, North American counterparts have been the preferred way of setting up business in the NAFTA region. Thanks to their foothold in North America, these Italian companies have been able to better understand and serve their client base while expanding their business.

I had the privilege of managing the Italian Trade Agency’s Mexico City office and supervising the Machines Italia Mexico franchise for the past 5 years. During my tenure, I have witnessed, and somewhat assisted, in the consolidation of the Italian presence in this country. I also saw similar trends happening in the rest of North America.

Now that my professional and personal experience in Mexico is nearing its end, I would like to thank all the Machines Italia readers and followers in Italy, Mexico, Canada and the USA. I would also like to thank all the Italian and Mexican companies and people I met throughout the years as well as the Italian Trade Agency’s Mexico City staff.

Your Opinion Matters

Success Stories & Testimonials

Pirelli recently unveiled its plan to invest USD $200 million to build a new car tire manufacturing facility in Silao, Guanajuato, Mexico. The announcement came only four years after the inauguration of another Pirelli factory in the ‘Puerto Interior’ industrial park in Silao and coincided with the visit to Mexico of Italy’s Prime Minister, Matteo Renzi and meeting with Mexican President, Enrique Pena Nieto at the Palacio Nacional, in Mexico City. According to the company, the new investment confirms the importance of Mexico to Pirelli’s international operations, especially the NAFTA market where the premium strategy is showing “promising” signs of success. The total value of the Italian multinational company in Mexico is now over USD $600 million.